With the private sector creating 297,000 jobsfrom November to December, Jeff Silber of BMO Capital Markets and Gary Bisbee at Barclays Capital said investors should be prepping to play the jobs recovery.
“If you look at the past two recessions, the employment stocks have outperformed the market handsomely in the second year of an employment recovery,” Bisbee told CNBC. “We’re at the beginning stages of a several-year profit recovery for the industry.”
Bisbee said he expects the employment staffing stocks to see a significant gain and eventually surpass their previous peak levels in 2013.
“You continue to ride Manpower,” suggested Bisbee. “It’s been a great stock in the last six months, but in the next 18 to 24 months, there’s likely another 50 percent upside in the stock.”
Meanwhile, Silber said small-cap employment stocks such as Robert Half International are likely to see a boost going forward. (Scroll down to see his full picks.)
“It had a great run 2010 and we think it’s got another good run in 2011,” he said of the stock.
Silber’s Jobs Trades:
Manpower
Trueblue
SFN Group
Robert Half International
______________________________
Scorecard—What He Said:
- Silber's Previous Appearance on CNBC (Feb. 4, 2010)
______________________________
More Market Intelligence:
______________________________
CNBC Data Pages:
______________________________
CNBC Slideshows:
______________________________
Disclosures:
Bisbee has investment banking clients who own shares of MAN, RHI and RECN.
No immediate information was available for Silber or his firm.
______________________________